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    I am seeking advice on how to invest ₤20k I've suddenly received through inheritance.

    While I am aware that this forum is designed for the purposes of those interested in employment in the field of finance, it is also heavily frequented by exactly the sort of individuals who possess both the capacity and interest to assist me.

    As I said, the sum is around ₤20k; I am currently in the first-year of University and am hoping to invest the money and spend it on a post-graduate degree (allowing me the opportunity to attend courses at prestigious Universities with higher fees) in about 2 years. The money may also finance further education pursuits in the future, such as travel expenses and the like. Therefore, some level of liquidity would be nice, i.e. being able to access the money once a year or so.

    I am currently looking at placing the money within a Jupiter Growth Unit Fund, with as much money as possible (I believe the limit is ₤7k) being held within ISA parameters, allowing it to be tax-free and so on.

    Some of the returns the fund has achieved in recent years is rather good, and I believe that, even after fees, the rate of return would still be higher than, say, at a high-street ISA account or high-interest savings account – the latter of which are well-known to have many undesirable obligations (such as moving to a lower-interest account after the first year).

    My choice I believe adequately reflects the level of risk I am willing to take.

    Is my assessment of the situation roughly correct? Although I am (somewhat) interested in Finance, I do not (obviously) profess to be particularly knowledgeable in the field and am hoping I don’t make some terrible mistake.
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    lol...

    you better off seeking professional advice. The last place I would think of asking for advice to invest 20k is a student forum, which is mostly of GCSE/A Level students.

    Dont make decisions yourself, seek some professional advise before you invest. You also need to think about asset allocation and other implications.
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    Pah, wouldn't that be an extremely expensive venture?

    I am not, of course, placing the decision on how to invest money in the hands of a student forum. Instead, I know that a lot of people here are interested in investing and may have some great ideas on how to invest. I got the original idea to invest in Jupiter somewhere on this forum, and have read some background on the company which seems to support the idea that it is a good company to invest with.

    I am consulting various sources, rest assured.
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    There might be great ideas to invest but ultimately it depends on your risk preferences. No point on me telling you to buy some risky penny shares from Cambodia if you are seeking a safe return of 5 - 6% per annum. People have different risk profiles, so you might find better answers if you tell us what sort of return you seeking. If you planning to dump the money in a mutual fund then you better of getting Shares/Investor's Chronicle magazine which provide an up to date comparison of different funds. Also you should look at the Investor's Guide (by Investor's Chronicle) which gives more info on fund types....etc. Many websites out there that can give you some sort of fund comparison (by means of return, sharpe ratio, volatility, manager profile) etc.
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    Let me just get Warren Buffet's number for you....................

    *Checks phonebook*

    hmmmmmmmmmm.....


    I'll have to get back to you on that one.
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    blow it on cfds with massive leverage :P
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    £20k is a lot of money that you don't want to lose, especially so young so definitely get in contact with an expert that really knows their stuff. Banks will do this for free (but most of the time they will be biased!). Look at secure options such as the ISA (Tax free up to £7k and up to 7% growth P.A), N.S.I etc etc. Steer well clear of the stock market for now - there's plenty of time for that!

    Or if you really want to be adventurous there are a number of "investor funds" where investors pool their money in various sectors that guarantee a certain percentage return. But again, this is pretty risque so either check it out in detail or go for the safer options at the moment.

    Disclaimer: I accept no responsibility for any losses, financially or otherwise, as a result of the information given on this post. It has been provided solely for advice only and should be treated with caution
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    You should probably have a look at managed funds etc, but that ISA account sounds good with the tax free element.
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    Take £10,000 and trade your own account, bank the rest. It's more fun and you'll learn tonnes. Ok, so maybe you may lose a lot of it, but so what. Lots of good traders learn by losing.
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    (Original post by PortfolioManager)
    lol...

    you better off seeking professional advice. The last place I would think of asking for advice to invest 20k is a student forum, which is mostly of GCSE/A Level students.

    Dont make decisions yourself, seek some professional advise before you invest. You also need to think about asset allocation and other implications.
    The so called "professionals" won't be working for free!

    To the OP: Don't invest in anything risky, (just put into a savings account or ISA etc), keep that money for the deposit on your house your going to have to buy in the future. Don't piss about with it.
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    (Original post by abshirf2)
    The so called "professionals" won't be working for free!
    To the OP: Don't invest in anything risky, (just put into a savings account or ISA etc), keep that money for the deposit on your house your going to have to buy in the future. Don't piss about with it.
    As opposed to dumping the money in a crap fund and being charged 2% - 3% of 20k? I meant ask someone you know who knows something about investing or someone who is a professional. Maybe your uncle who has made some money or something. But i personally wouldnt start investing without knowledge of the markets.
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    Given that you're looking to use this money for something very specific (Post Grad) in a very short time (~2 years) I would avoid equities, irrespective of the outlook for them, and anything managed as your primary goal is preservation of capital. Seeing as you're probably wanting ~5-6% I'd stick with the risk free rate, which, conveniently, is somewhere handy.

    (insert appropriate disclaimers)

    If I were you I'd use my ISA allowance and then be really boring by plonking the rest in the highest yielding savings account/bond that I could.
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    Disclaimer:- I am not responsible for any financial losses. This does not constitute investment advice. I am not an authorised financial adviser, accordingly you should seek professional financial advice.


    2 years is far too short to be thinking of tying your money up in a fund. You should be looking at how much that masters will cost and banking enough to cover it in a risk free account. Since you presumably intend to draw the money out of the accounts to pay for your course/travelling/whatever, provided you are not presently paying tax and will not do so before you spend all of the money, the tax benefits of an ISA are likely to be irrelevant to you (since you can reclaim tax paid on interest income http://www.hmrc.gov.uk/taxback/intro.htm).
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    (Original post by PortfolioManager)
    But i personally wouldnt start investing without knowledge of the markets.
    I wouldn't either. It is better to ask someone that knows what they are talking about, especially for free.
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    Invest in nuclear power soon it will be the future.
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    (Original post by PortfolioManager)
    There might be great ideas to invest but ultimately it depends on your risk preferences. No point on me telling you to buy some risky penny shares from Cambodia if you are seeking a safe return of 5 - 6% per annum. People have different risk profiles, so you might find better answers if you tell us what sort of return you seeking. If you planning to dump the money in a mutual fund then you better of getting Shares/Investor's Chronicle magazine which provide an up to date comparison of different funds. Also you should look at the Investor's Guide (by Investor's Chronicle) which gives more info on fund types....etc. Many websites out there that can give you some sort of fund comparison (by means of return, sharpe ratio, volatility, manager profile) etc.

    There is of course the option of just sticking your money into an index tracker and just letting it sit there for 10 years.
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    (Original post by kahler_potential)
    There is of course the option of just sticking your money into an index tracker and just letting it sit there for 10 years.
    If you had read the OP, they wanted to use much of the money to pay for University fees in 2-3 years time!
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    These are the 2 highest paying building society bonds in UK today. May change tomorrow. http://www.moneysupermarket.com/savi...ults=7&Lender=
    http://www.moneysupermarket.com/savi...ults=7&Lender=
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    quick! invest all the money in URA.lse before tuesday.
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    (Original post by The Regend)
    If you had read the OP, they wanted to use much of the money to pay for University fees in 2-3 years time!
    And if you'd read my reply to it, you'd realise that I am entirely aware of that. My comment about the index tracker was specific to PM's post.
 
 
 
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